Selling Your Timber

Monitor
the Harvest
Operation
Check the logging operation on a
regular basis to ensure contract
requirements are being met.
Always require as part of pay-perunit
sales that you are provided
with a full accounting of what’s
being harvested. This information
should be provided to you by the
buyer. The frequency with which
you receive this information is up
to you, but it’s recommended that
it be provided on a regular time
schedule, i.e. weekly, monthly, etc.
Requiring a load-by-load accounting
of forest products removed
from your timber sale is a good
business practice for you and the
buyer. It provides you with a full
accounting of what is harvested
off your property and helps
ensure that contractual terms are
fulfilled.
Record-keeping on per-unit sales:
• Load number
• County and state of origin
• Landowner’s name
• Date and time
• Scale ticket number
• Species and product
• Destination
• Purchaser
Acknowledgements:
• Dr. Richard Brinker
• Auburn University
• Alabama Cooperative
Extension System
• Arkansas Forestry
Commission
• North Carolina Department of
Forest Resources
• Cornell Cooperative Extension
• Steve Nix, About.com Guide
• USDA Forest Service,
Cooperative Forestry
• Reduce the possibilities for non-point source
pollution:
You should specify that all logging should be done
in accordance with “Mississippi’s Best Management
Practices (BMPs) for Forestry.” For more information
on BMPs visit our website at www.mfc.ms.gov/waterquality.php
• Stump Height and Top Diameter Harvested:
If stump height and top diameter harvested is
important to you, then you should specify, in inches, the
maximum stump height allowed or top diameter. If you
want to easily machine-plant your next timber stand,
allow a maximum stump height over which the tree
planter can easily maneuver.
• Selling Your Timber Based on Unit Volume:
If you are selling your timber based on unit volume, be
sure to specify the maximum top diameter that you will
allow to remain in the woods.
• Cleanup:
Include a statement requiring removal of all litter and
trash from the logging operation. You may also want to
specify that logging debris be scattered back over the
site, versus piled at the logging deck.
The Sale and Harvest
• Arrange a meeting with the buyer and/or logger so that
you or your representative can point out any
special restrictions that you have imposed. Walk the
sale site to ensure sale boundary lines and other
restrictions are understood.
• Check the logging operation on a regular basis and
inform the logging supervisor if you think that the terms
of the contract are not being faithfully followed.
• Be reasonable in your expectations and assignment of
damage penalties. In some instances, the amount
that you receive for your timber may be reduced
due to excessive restrictions.
Other Contract Provisions to Consider
• Name and address of buyer
• Date contract is executed
• Declarations of the seller’s ownership and right
to convey. This may include a title abstract and
insurance.
• Clarify ownership of by-products.
• Liability Insurance of all contractors and
sub-contractors
• State who is responsible for paying severance tax.
• Statement of who suffers the loss if timber is destroyed
or stolen
• Provision for or against assignment of the contract
• Notarization of the contract
www.mfc.ms.gov
6.
7.
• Recording of the contract at the county courthouse
• A performance bond or deposit — collected from the
buyer prior to the commencement of harvesting — to
be held by a third party until provisions of the contract
are met
• Require PLM certification for logger.
Monitor the Harvest
You or your agent should frequently inspect the
harvesting operation to ensure the contract terms are
being fulfilled.
When you sell on a per-unit basis, a full accounting of
what was removed during the harvest should be provided
by the buyer. You can designate how frequently you want
the information: weekly, monthly, or at the end of the sale.
Minimum information received should include:
• Each load of timber leaving a cutting site must be
assigned a load number. Load numbers for each job
site should be in numerical sequence.
• The county and state where the timber was cut
• The landowner’s name, or if multiple owners, the name
of the estate where the timber is being cut.
• Date and time the forest product was loaded on the
truck
• The scale ticket number that corresponds to each
load number to verify delivery of individual loads of
forest product
• The forest product type identified (for example: pine
logs, pine poles, pine pulpwood, hardwood logs,
hardwood pulp, chip and saw, woody biomass, and
miscellaneous forest products)
• Destination of the first wood-receiving facility that the
forest product is being transported to
• The name of the logging company, wood dealer, or
producer removing the forest products
Closeout with Buyer/Logger
• A notice of completion of harvest from the buyer can be
helpful in removing any question if the buyer considers
the harvest complete and relinquishes remaining
biomass back to owner.
• Review and agree on action and timing to address
any land or timber damages related to harvesting
operations.
• Address any other issues related to non-compliance
of the contract.
• Ensure compliance with BMPs.
For more information, contact one of the following agencies or organizations:
www.fs.fed.us
www.msforestry.net
http://www.msforestry.net/treefarm/
the-farm-program.html
http://www.msforestrystry.net/sfiloggers/
sustainable-forestry-initiative.html
www.msucares.com
The Mississippi Forestry Commission (MFC) provides equal employment opportunity and services to all individuals regardless of disability, race, age, religion, color, gender, creed, national origin, or
political affiliation. This institution is an equal opportunity provider.